Atmastco Ltd. कंपली की लेखा नीति

Mar 31, 2025

2. Significant accounting policies

2.1 Basis of preparation of Financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting
Principles (“GAAP”) under the historical cost convention on the accrual basis. GAAP comprises
mandatory accounting standards specified under Section 133 of the Act, read with Companies
(Accounting Standards) Rules,2021 and the provisions of the Companies Act, 2013.

The accounting policies adopted in the preparation of the financial statements are consistent with
those followed in the previous year.

The Company has rounded off all the amounts in these financial statements to nearest lacs and two
decimal thereof, unless otherwise specifically stated.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the
Management to make estimates and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income and expenses during the period. The
Management believes that the estimates used in preparation of the financial statements are prudent and
reasonable. Future results could differ due to these estimates and the differences between the actual
results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Cash and cash equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term
balances (with an original maturity of three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.

2.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items
and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.

2.5 Property, Plant and equipments and Intangible Assets

a. Property, Plant and equipments

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses,
if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any
import duties and other taxes (other than those subsequently recoverable from the tax authorities), any
directly attributable expenditure on making the asset ready for its intended use, other incidental expenses
and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is
ready for its intended use. Machinery spares which can be used only in connection with an item of fixed
asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the
principal item of the relevant assets.

Subsequent expenditure on fixed assets after its purchase / completion is capitalised only if such
expenditure results in an increase in the future benefits from such asset beyond its previously assessed
standard of performance.

b. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation on tangible fixed assets has been provided on the Written Down
Method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Intangible assets are amortised over their estimated useful life on written down method.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of
each financial year and the amortisation period is revised to reflect the changed pattern, if any.

c. Intangible assets

Computer software developed are amortised on a straight line basis over the shorter of the useful
economic life or 3 years, whichever is lower.

d. Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the
arrangement of borrowings and exchange difference arising from foreign currency borrowings to the
extent they are regarded as an adjustment to the interest cost.

Borrowings Costs directly attributable to the acquisition, construction or production of an asset that
necessarily taken a substantial period of time to get ready for its intended use or sale are capitalized as part
of the cost of the respective asset. All other borrowings costs are expensed in the period they occur.

2.6 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Company and revenue can be reliably measured. The following specific recognition criteria must also be
met before revenue is recognized:

a. Sale of goods

Revenue from Sale of goods is recognised when all the Significant risks and rewards or ownership of
the goods have been passed to the buyer. The Company collects Goods & Services Tax (GST) on behalf
of the Government and therefore, these are not economic benefits flowing to the company. Hence, they
are excluded from revenue. Goods & Services Tax (GST) deducted from revenue (gross) is the amount
that is included in the revenue (gross) and not the entire amount of liability arising during the year.

b. Sale of Services

Revenue from Service transactions is recognised as the service is performed. The Completed service
contract method is used for the revenue recognition.

In case of indivisible works contracts, revenues are recognized on percentage completion method,
synchronised to the billing schedules agreed by the customers.

Revenue in respect of billed and unbilled contracts/property development in progress includes
recognised profits based on percentage of completion and retention on bills. Provision for expected
losses is made irrespective of percentage of completion.

c. Other income

Interest income is recognized on a time proportion basis taking into account the amount outstanding
and the applicable interest rate. Interest income is included under the head “other income" in the
statement of profit and loss.

2.7 Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and
compensated absences. The Payment of gratuity Act'' 1972 is applicable on the company.

2.8 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax
effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during
the period. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the
post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to
expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic earnings per share and the
weighted average number of equity shares which could have been issued on the conversion of all dilutive
potential equity shares.

2.9 Taxes on income

Income-tax expense comprises current tax, deferred tax charge or credit.

Current tax is the amount of tax payable on the taxable income for the period as determined in
accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other
applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income
and the accounting income that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively
enacted as at the reporting date.

Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised
for timing differences of items other than unabsorbed depreciation and carry forward losses only to the
extent that reasonable certainty exists that sufficient future taxable income will be available against
which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses
and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty
supported by convincing evidence that there will be sufficient future taxable income available to realise
the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the
same governing tax laws and the Company has a legally enforceable right for such set off.

Deferred tax assets are reviewed at each balance sheet date for their realisability.

2.10 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for
obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the
goods to the point of sale, including octroi and other levies, transit insurance and receiving charges.
Work-in-progress and finished goods include appropriate proportion of overheads.

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Mar 31, 2024

1 The Company Overview

Atmastco Limited (CIN U29222CT1994PLC008234) was incorporated as a Private Limited Company on 7th April year 1994 and this Company become Public Limited on and from 10th May 2016. Prior to this date, Company was known as Atmastco Private Limited. On 23rd Feb 2024 the company became listed company. The Company, since its inception. is engaged in Trading of Steel Goods/Items, Industrial Goods etc. and later on, commenced its commercial activities in Engineering & Erection Business.

2 Significant accounting policies

2.1 Basis of preparation of Financial Statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards specified under Section 133 of the Act, read with Companies (Accounting Standards) Rules, 2021 and the provisions of the Companies Act, 2013.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

The Company has rounded off all the amounts in these financial statements to nearest lacs and two decimal thereof, unless otherwise specifically stated.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

2.5 Property, Plant and quipments and Intangible Assets

_a. Property, Plant and Equipments

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure on fixed assets after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

b. Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets has been provided on the Written Down Method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Intangible assets are amortised over their estimated useful life on written down method.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any.

_c. Intangible assets

Computer software developed are amortised on a straight line basis over the shorter of the useful economic life or 3 years, whichever is lower.

d. Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange difference arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowings Costs directly attributable to the acquisition, construction or production of an asset that necessarily taken a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowings costs are expensed in the period they occur.

2.6 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized: _a Sale of goods

Revenue from Sale of goods is recognised when all the Significant risks and rewards or ownership of the goods have been passed to the buyer. The Company collects Goods & Services Tax (GST) on behalf of the Government and therefore, these are not economic benefits flowing to the company. Hence, they are excluded from revenue. Goods & Services Tax (GST) deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

_b. Sale of Services

Revenue from Service transactions is recognised as the service is performed. The Completed service contract method is used for the revenue recognition.

In case of indivisible works contracts, revenues are recognized on percentage completion method, synchronised to the billing schedules agreed by the customers.

Revenue in respect of billed and unbilled contracts / property development in progress includes recognised profits based on percentage of completion and retention on bills. Provision for expected losses is made irrespective of percentage of completion.

_c Other income

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss.

2.7 Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.

The Payment of gratuity Act'' 1972 is applicable on the company.

2.8 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.9 Taxes on income

Income-tax expense comprises current tax, deferred tax charge or credit.

Current tax is the amount of tax payable on the taxable income for the period as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date.

Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off.

Deferred tax assets are reviewed at each balance sheet date for their realisability.

2.10 Inventories

Inventories are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale, including octroi and other levies, transit insurance and receiving charges. Work-in-progress and finished goods include appropriate proportion of overheads.

2.11 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.

2.12 Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

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Mar 31, 2023

1    The Company Overview

Atmastco Limited (the Holding Company-CIN U29222CT199-1PLC008234) was Incorporated os a Private Limited Compnny on 7ti April year 1994 and Otis Company become Public Limited on and from 10th May 2016. Prior to this date. Company was known at Atmastco Private Umlted. The Company, since Its Inception. Is engaged In Trading of Steel Goods/Items, Industrial Goods etc anc later on, commenced its commercial activities In Engineering & Erection Business.

2    Significant accounting policies

2.1 Basis of preparation of Financial Statements

The financial statements arc prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP*) under tiv historical cost convention on the accrual baslB. GAAP comprises mandatory accounting standards specified under Section 133 of th< Act read with Companies (Accounting Standards) Rules,2021 and the provisions of the Companies Act 2013.

The accounting policies adopted in the preparation of the financial statements are consistent with those followed In the previous year.

The Company lias rounded off all the amounts in these financial statements to nearest thousands and two decimal thereof, unlcst otherwise specifically stated.

2J2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

23 Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from llie date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.4 Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

23 Property, Plant and equipments and Intangible Assets

a.    Property, Plant and equipments

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure on fixed assets after its purchase / completion is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

b.    Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less Its estimated residual value. Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act 2013.

Intangible assets are amortised over their estimated useful life on straight line method.

The estimated useful life of the intangible assets and tire amortisation period are reviewed at the end of each financial year and the amortisation period Is revised to reflect the changed pattern, if any.

c.    Intangible assets

Computer software developed are amortised on a straight line basis over the shorter of the useful economic life or 3 years, whichever is lower.

d.    Borrowing Costs

Borrowing cost includes interest, amortization of ancillary costs Incurred In connection with the arrangement of borrowings and

exclumgc dif/rence arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Borrowings Costs directly attributable to tire acquisition, construction or production of an asset that necessarily taken a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. AU other borrowings costs are expensed in the period they occur.    ______ _

2.6    Revenue recognition

Revenue la recognized to the enlent that it U probable that the economic benefits will flow to the Company and lie revenue cm be

reliably measured. The following specific recognition criteria must also be met before revenue Is recognized:

a.    Sale of goods

Revenue from Sale of goods is recognised when all the Significant risks and rewards or ownership of the goods have been passed to the buyer. The Company collects Goods & Services Tax (GST) on behalf of the Government and therefore, these are not economic benefits flowing to the company. 1 lence. they are excluded from revenue.Coods & Services Tax (CST) deducted from revenue (gross) is the amount that is included in the revenue (gross) and not the entire amount of liability arising during the year.

b.    Sale of Services

Revenue from Service transactions is recognised as the service is performed. The Completed service contract method is used for the revenue recognition.

c.    Other Income

Interest income is recognized on a lime proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income’ in the statement of profit and loss.

2.7    Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.

2J Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (Including the post tax effect of extraordinary items if any) by the weighted average number of equity siiarcs outstanding during the period. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighlcd average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.9 Taxes on income

Income-tax expense comprises current tax, deferred tax charge or credit.

^C“™ⁿ‘^{U the amount of} P^le °n the taxable income for the period as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.    ^

Defcired tax is recognised on timing differences, being the differences between the taxable income and the accounting income that onginale m one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date    °

Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorlxd depreciation and carry forward losses only to the extent that reasonable certainty exists⁸that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depredation and cany forward of losses and Hems relating to capital losses, defened tax assets are recognised only If there is virtud certainty supped by convincing evidence that there will be suffident future taxable Income available to realise the assets. Deferred tax S

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Deferred lax assets are reviewed at each balance sheet date for their reallsability.

2.10    Inventories

Inventor^ are valued at the lower of cost and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges In bringing the goods to the point of sale, including octroi and other levies! transit Insurance and recetvmg charges. Work-in-progress and finished goods include appropriate proportion of overheads.

2.11    Provisions and contingencies

ZZZr* ^°^Sni^'^d 'r^{hm the}, ^C°,^mpa"^{y h}“ ^{3 prm}'^{nt Obli8a,ion} “ ^{a rcsu1}' °^f P“' events I* b probable dial an outflow of resources wdl be required to settle the obligation in respect of which s reliable estimate cam be made Provisions (excluding

2S7¹*    "^{C n0}‘ ^dls'^{ounted 10 U}'^cir P"**"¹Â value ">d are determined based on the best estimate required to settle tte

obligation a the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the cu^snt best ,t« Contingent liabilities are disclosed in Die Notes. Contingent assets are not recognised in the financial statements.

2.12    Operating cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation